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6 National Newsagent July 2010
NEWS
Industry News
NDD TO
CLOSE
The June
announcement
from IPMG that
NDD was to close
was met with
dismay, relief,
pleasure and pain
from different
quarters of the
industry.
As a consequence of recent significant
reduction in distribution volumes IPMG
(NDD's parent company and shareholder)
took the decision to wind down the NDD
business.
NDD recently lost the News Magazines
portfolio to Gordon and Gotch which was
the nail in the coffin.
Industry insiders have suggested that it
was NDD's inability to provide an on-sale
on Mondays that may have been the issue.
NDD is migrating its publisher-clients
to alternative distributors and by the later
part of 2010 newsagents will be serviced
by just two major distributors, Network
Services and Gordon and Gotch.
This may mean more efficiency or it
could mean greater transport costs for
the remaining two and increased costs for
publishers.
If many of the imported, niche titles
that NDD distributed disappear from the
Australian scene newsagents will not be sorry.
NDD has assured newsagents that all
deliveries credits and payments will be
processed as normal.
The ANF expressed regret at the news
and commended NDD staff for their
work. "It is to be hoped that staff will find
satisfactory employment in the months
to come," ANF CEO Alf Maccioni said.
"We expect that newsagents will suffer
minimal disruption as publishers transfer
their distribution agreements to Gordon
and Gotch or Network Services or make
alternative arrangements." The ANF will
liaise with NDD in the meantime.
It was only last December that
NDD won an award as International
Distributor of the Year at the Association
of Circulation Executives in the UK. NDD
had worked hard to provide service,
develop an effective website and be
creative in their business, but with falling
print circulations there was probably
only room for two distributors in the
Australian market.
NDD began in 1987 when Warwick
Fairfax tried to privatise the Fairfax
family company. One of the transactions
that took place was the sale of most of
the Fairfax Magazines to ACP. Fairfax
had their own magazine distribution
business, which ACP didn't need as
they already owned Network Services
(or NDC, as it was known then). Michael
Hannan and his then business partner
John B Fairfax took over the remnants
of the Fairfax Magazine distribution
and built NDD, which was a significant
distributor for many years.
Tax Pack
NDD is distributing the 2010/11 TAX
PACK on behalf of the ATO. Newsagents
receive 17 cents per copy supplied.
The tax packs are free of charge to
customers.If any agent does not have
a record of their 2009 supply, they can
simply login to www.newsdirect.com.au
and access the standing order in the My
Supply section.
The demand for TAX PACKS will have
abated by the time NDD closes its doors
and agents can continue to access the
NDD website in the meantime.
FAIR WORK AUSTRALIA
-- MINIMUM WAGE PANEL
DECISION
The Fair Work Australia (FWA) Minimum
Wage Panel recently handed down its
inaugural annual wage review decision,
increasing Modern Award wages by $26
per week or 69c per hour (on the basis of
a 38 hour week) effective from the first
pay period on or after 1 July 2010.
They also lifted the national minimum
wage to $569.90 per week or $15 per
hour.
Pay rates and penalties should continue
to be paid under current award pay
schedules until 1st July 2010. The wage
increase does not apply to businesses,
such as sole traders and partnerships
and some trusts that transferred to